Head Office 9-1, Shinmatsudo-Higashi, Matsudo City, Chiba Phone: URL

Transcription

1 Head Office 9-1, Shinmatsudo-Higashi, Matsudo City, Chiba Phone: URL

2 TOP MESSAGE Matsumotokiyoshi Co., Ltd. ( the Company ) originates from the privately-run Matsumoto Drugstore founded by Kiyoshi Matsumoto in Kogane, Matsudo City, Chiba Prefecture in The present Matsumotokiyoshi drugstores firmly maintain the founder s spirit of good service to constantly seek customer satisfaction with its motto of providing quality products at low prices, without being shackled by stereotypical mind-set. This spirit combines the volume purchase system with the chain store theory earned by the founder in the United States. In August 1990, the Company listed on the over-the-counter market. In August 1999, the Company listed on the First Section of the Tokyo Stock Exchange, and subsequently consolidated its status as Japan s largest drugstore in terms of sales. In 1981, the number of the Company s stores totaled 100. In July 1987, the Company opened its 250th store in Ueno Ameyoko, Tokyo, incorporating a totally new concept of urban drugstore. The success of this store, boosted in part by the morning shampoo boom in Japan, established a basis for further growth of the urban drugstore chain, accelerating the founding of a series of Matsumotokiyoshi drugstores in the Tokyo metropolitan area. In August 1995, the Company established its 378th outlet of Shibuya Part 1 Store in central Tokyo. At that time, the new store often appeared on TV and magazines as the Shibuya district was becoming a source of mass-media information. An article in women s weekly magazine introduced the drugstore, referring to the phrase Matsukiyo suru (go shopping at Matsumotokiyoshi). Since abbreviations were considered trendy at that time, Matsumotokiyoshi became known throughout Japan by word of mouth with the pet name of Matsukiyo. In April 1996, the Company began TV commercials so that people throughout the nation would recognize the drugstore business and the presence of Matsumotokiyoshi. In March 2001, the number of the Company s chain stores reached 500. In February 2001, organizational reform was implemented to integrate the marketing and operational functions of the Drugstore Division and the Supermarket Division. Under this new structure, the Company launched a medium-term management plan to increase the number of stores to 1,000 nationwide by March 2008: the number of shops throughout the Kanto region to 900 and other regions from Hokkaido to Kyushu to 100, mainly in cities with populations of at least 300,000, centering on shopping districts and railway stations with shopping complex. The Company will strive to become Japan s No. by establishing stores and running operations with the purpose of satisfying customers, upholding the motto of friendly stores and the founder s spirit of sincerity with affectionate services as its basic principle. Strategy for new store-openings The Company, which achieved the launch of its 500th Matsumotokiyoshi drugstore in March 2001, now targets at increasing the number of its stores to 1,000 by March Many will be opened in the Kanto region, and others at shopping districts and railway stations with shopping complex in cities with populations of at least 300,000 in regions from Hokkaido to Kyushu. The Company also aims to boost net sales to 500 billion by March The Company opened 80 new stores in fiscal year ended March 2004 (suburban-type stores: 33; urban-type stores: 47). Currently, a total of 648 stores are located in 26 prefectures, of which 11 were added in fiscal year ended March 2004, including Hokkaido, Aomori, Akita, Iwate, Aichi, Nara, Gifu, Mie, Kyoto, Hiroshima and Oita. It should be noted that, of the newly opened stores in the fiscal year, 22 are located at shopping complexes in railway stations. The purpose of developing businesses at stations of Japan Railways and other private railways is to invite well-known tenants that can attract many customers, thus revitalizing the local economy. This coincides with the Company s idea to open more stores at shopping districts and railway stations with shopping complex, a field Matsumotokiyoshi is specialized, enabling to accelerate new store opening. A store in the shopping complex of a railway station usually sells about 20,000 items such as cosmetics, pharmaceuticals, health foods, supplements and daily sundries on a floor space of square meters ( tsubo). In particular, the store s lineup and layout of cosmetics, health foods and supplements under the theme of beauty and health are devised to satisfy female customers. With this concept, the Company is endeavoring to differentiate itself from peers in the sector. During the year, the Company also set up six prescription pharmacies, including one in front of Ashikaga Red Cross Hospital in Tochigi Prefecture. For fiscal 2005, ending March 2005, the Company plans to establish 80 to 90 new stores (suburban-type stores: 50%; urbantype stores: 50%). Of the planned new stores, 10 to 15 will be located in shopping complexes of railway stations. Business partnership and M&As The Company achieved the establishment of 500 stores in fiscal year ended March Now, we are aiming at forming the Matsumotokiyoshi Group in Japan by the year through March 2008, by which the Company also targets at running 1,000 directly managed drugstores. The Company is making its utmost to increase the Group s net sales to 1 trillion by the year through March 2008, a total of 500 billion in its own sales and 500 billion in sales from tie-up operations. The Company will also implement mergers and acquisitions with other firms through capital alliance to collect regional information from partners and increase the number of stores with the cooperation of its associates. The purposes of business alliances are as follows: 1. To mutually supply merchandise, including self-developed products 2. To exchange information about procurement, marketing and prices of merchandise 3. To share logistics-center functions 4. To jointly use dispensing systems 5. To exchange information about new store opening Business partnership was formed with the following 12 firms: May 30, 2001 Takada Pharmaceutical Co., Ltd. in Shizuoka Prefecture June 20, 2001 Yokohama Pharmacy Co., Ltd. in Aomori Prefecture June 20, 2001 Drug Fujii Co., Ltd. in Toyama Prefecture October 15, 2001 Sapporo Drug Store Co., Ltd. in Hokkaido Prefecture October 15, 2001 Natural Co., Ltd. in Fukuoka Prefecture February 7, 2002 Shimizu Drug Co., Ltd. in Kyoto Prefecture October 16, 2002 Koyo Yakuhin Co., Ltd. in Osaka Prefecture February 13, 2003 Itayamamedico Co., Ltd. in Yamanashi Prefecture August 8, 2003 Powers Drug Co., Ltd. in Hokkaido Prefecture August 8, 2003 Komeya Drugstore Co., Ltd. in Ishikawa Prefecture January 14, 2004 Izumi Co., Ltd. in Hiroshima Prefecture February 10, 2004 Drug Eleven Co., Ltd. in Fukuoka Prefecture Capital alliance was established with the following two drugstore firms that became subsidiaries of the Company: December 25, 2003 Tobu Drug Co., Ltd. in Saitama Prefecture January 7, 2004 Kenkou Kazoku Drug Corporation in Nagano Prefecture The Company also announced on March 22, 2004 a capital alliance with Itohide Shoji Co., Ltd. in Chiba Prefecture, aiming to establish business models of the logistics/retail business that integrates production, distribution and sales, as well as establish an ideal supply chain management system. Financial Highlights (Fiscal year ended March 31) Sales by division Drugstores Supermarkets 252, , , , , ,263 (Unit: millions of yen) Home centers 261, , , ,657 Ordinary income (Unit: millions of yen) Net income (Unit: millions of yen) 8,702 14,963 15,504 7,229 12,423 6,763 10,949 11,011 6,037 5,139 Shareholders equity (Unit: millions of yen) Number of employees (Unit: persons) 82,502 Full-time workers Part-timers (per 8-hours working time) 74,554 68,173 5,741 61,994 5,009 56,956 4,797 2,911 6,212 6,120 2,946 3,075 2,809 2,558 3,266 3,045 2,830 Number of stores Drugstores Others (Unit: number of stores) Target: 1,000 stores 2,239 2, ,782 33,096 31,053 24,311 17,170 14,062 13,873 12,350 10,905 9,

3 DRUG STORE [Urban type] Drugstore Establishment of a drugstore chain with the highest sales in Japan The Company operates many Matsumotokiyoshi drugstores in prime locations in the Tokyo metropolitan area, has a wide range of excellent items that meet consumer needs, and markets them together with the consulting services of expert staff. Through such practice, the Company has built a relationship of deep trust with customers. Matsumotokiyoshi drugstores deal with many items of medicines, healthcare and beauty care goods, as well as test products of cosmetics under the community-based marketing, meeting the needs of respective customers in each region where stores are located. By doing so, each store enhances its capabilities to attract customers. Kyoto Shijo-dori Store Shinsaibashi Store Fukuyama LOTZ Store Sendai Station Store Sapporo Minami Ichijo Store Ikebukuro Part 2 Store Canal City Hakata Store 3 Ginza 5th Store Shibuya Part 2 Store Shibuya Part 1 Store Motoyawata Station Store 4

4 DRUG STORE [in railway station shopping complex] Drugstore Niigata Station Patio East Store (JR East) Okayama Station B-1 Store (JR West) Ebista Nishinomiya Store (Nishinomiya Station of Hankyu Railway) Nagoya Station Taiko-dori Exit Store (JR Tokai) Abenobashi Station East Exit Store (Kintetsu Railway) Asty Gifu Station Store (JR Tokai) Toyohashi Station Building Kalmia Store (JR Tokai) Akita Station Building ALS Store (JR East) Crost Osaka Station Store (JR West) 5 Kintetsu Nara Station Store (Kintetsu Railway) Aomori Station Building Lovina Store (JR East) Perie Inage Store (JR East) 6

5 DRUG STORE [Suburban type drugstore / Prescription pharmacy] Business Topics Lineups of private brand products on the rise Drugstore Urayasu Higashino Pharmacy Ashikaga Honjo Prescription counter Drugstore Chiba Sakusabe Pharmacy Kitamatsudo SUPER MARKET Reinforcement of fresh-food supermarkets HOME CENTER Stable growth by new-concept home center Supermarket The Company s supermarket sector operates food supermarkets centering on perishables, with foods as the essentials of everyday life. With the motto of providing quality products at low prices, our supermarkets stock a great number of high quality merchandise, market them at prices that please the customers and offer them conscientious services to customers, as the Company strives to win the hearts of local customers by precisely identifying their needs. The sector is making its utmost to further grow by, for example, establishing its own logistics system to Supermarket Yakuendai stabilize prices and distribution operations. Matsumotokiyoshi operates home centers using its managerial expertise and storeoperating techniques accumulated for years since its foundation. Equipped with a large parking lot, a full-scale home center Matsumotokiyoshi stocks a wide range of product lineups, including do-it-yourself (DIY) merchandise, exterior goods, automotive accessories, items for pets and gardening articles. With pay less discount policy, the home centers have succeeded in encouraging consumers to buy. 7 Futatsugi Home Center Store Matsumotokiyoshi-sponsored TV programs TV station Program name Time slot (day of the week) Nippon Television (NTV) Bakusho Mondai no Susume Toshio Kakei & Da Pump s Shonen Chample Shingata TV Doshiroto Sugao ga Ichiban Downtown s Gaki no Tsukaiya Arahende! NNN Document 04 Matsumotokiyoshi Membership Card Matsumotokiyoshi Point Card 24:10-24:40 (Monday) 24:10-24:40 (Tuesday) 24:10-24:40 (Wednesday) 24:14-24:44 (Friday) 10:00-10:30 (Saturday) 22:56-23:26 (Sunday) 24:25-24:55 (Sunday) TV station Program name Time slot (day of the week) Tokyo Broadcasting System (TBS) Fuji Television Network (CX) TV Tokyo (TX) Bucchake Ninety-nine Super Friday Count Down TV Waratte Iitomo! Zokango Saturday Special Members of popular Matsumotokiyoshi Membership Card on the rise (nationwide broadcast) (nationwide broadcast) 20:00-20:54 (Wednesday) 19:00-20:54 (Friday) 24:55-25:40 (Saturday) 10:00-11:45 (Sunday) 19:00-20:54 (Saturday) No registration fee, no annual membership fee for ever. New members receive a Matsumotokiyoshi Voucher worth 1,000. When paying by Matsumotokiyoshi Membership Card, the member gets a 10% discount from list prices for Shiseido, Kanebo, Kose, Kao Sofina and Max Factor products (excluding exceptional periods). When paying by Matsumotokiyoshi Membership Card in Japan or abroad, the member gets 1 point for every 100 purchase, and will receive a Matsumotokiyoshi Voucher when the points exceed 500. When the number of members increases by 100,000, the Company draws a lottery and awards overseas trips to 500 pairs or 1,000 persons among the members who have paid more than 5,000 using the card. The members can use telephone counseling services regarding health, medical treatment and nursing care round-the-clock all year round. The members can easily shop and cash. The members will be informed of various events and present campaigns. The members are covered by overseas travel accident insurance up to 20 million. The members are covered by domestic travel accident insurance up to 10 million. The members are covered by buckled-up car accident insurance up to 2 million. The members are ensured against loss or theft of the card. One point is added for every shopping worth 100. When the points reach 500, the customer gets Matsumotokiyoshi Prepaid Card equivalent to 500 or a deduction of 500 from the purchase total. The members get additional Goopon points as double point privilege with their purchase. (As of April 30, 2004) 8

6 Pharmacists Education Center Program Contents Practice Medical Office Work Progressive System by EOS Matsumotokiyoshi introduced an electronic ordering system (EOS) ahead of peers in the sector to quickly deliver necessary prescription medicines to Matsumotokiyoshi pharmacies and patients. The Company has proactively established and improved infrastructures to patients from Matsumotokiyoshi prescription pharmacies, and for prescription, information and distribution to speedily provide replenishes the medicines to the stores. Equipped with this efficient patients with needed medicines anytime at any prescription pharmacy. supply system, the center can optimize its inventory, and make full use In 2002, the Company opened a storage center for prescription of the knowledge and technologies acquired at the Matsumotokiyoshi medicines in Yoshikawa, Saitama Prefecture, and introduced the EOS Pharmacists Education Center, thereby offering the optimal advice on as a pioneer in the industry. With this system, the storage center healthcare and life to patients. automatically receives orders for prescription medicines administered In-service Training Medical Clerical Work PC Training Input of prescription medicines (prescription pharmacy) Administration Delivering (prescription pharmacy) Automatic ordering of prescription medicines by needed amount Patients Distributing (distribution center) Lecture Drug Information Preparation of medicines (prescription pharmacy) Screening (prescription medicine storage center) Picking medicines (prescription medicine storage center) Online ordering (prescription medicine storage center) General Training Medicines Information Management Office Cosmetics Education Center Genki CLUB Life Support Raku As the Company recommends self-medication, nursing care items are lined in the store shelves to support beauty and health, as well as the aging society. The center holds beautification courses by counseling experts with the topic beauty and health for employees and customers with counseling experts. 9 10

7 Stores Location (As of March 31, 2004) Drugstores: 632 Supermarkets: 11 Home centers: 5 Akita Hokkaido Ishikari Distribution Center Business Partnership The drugstore business is now facing the harshest-ever management issues, including intensifying competition for new store opening, entrants into the industry from different sectors and lowering profitability due to fierce price competition. Facing such business conditions, the Company has formed business partnership with other firms to develop future businesses and improve operational efficiency, through information exchanges, mutual supply of products and cooperation in the planning and development of private brand products. Sapporo Drug Store Co., Ltd. Headquarters: Sapporo, Hokkaido Prefecture Shimizu Drug Co., Ltd. Headquarters: Kyoto, Kyoto Prefecture Aomori Okayama Kyoto Iwate Yokohama Pharmacy Co., Ltd. (Super Drug Asahi) Headquarters: Itayanagi-machi, Aomori Prefecture Koyo Yakuhin Co., Ltd. (Koyo) Headquarters: Osaka, Osaka Prefecture Hyogo Gifu Miyagi 4 drugstores Fukuoka 3 drugstores Itayamamedico Co., Ltd. Headquarters: Kofu, Yamanashi Prefecture Drug Fujii Co., Ltd. Headquarters: Takaoka, Toyama Prefecture Omihachiman Distribution Center Yoshikawa Distribution Center Yokohama Distribution Center Fukushima 8 drugstores Takada Pharmaceutical Co., Ltd. Headquarters: Shizuoka, Shizuoka Prefecture Natural Co., Ltd. (Drugstore Mori) Headquarters: Amagi, Fukuoka Prefecture Hiroshima Shizuoka 2 drugstores Niigata Oita Mie Tochigi 27 drugstores Powers Drug Co., Ltd. Headquarters: Sapporo, Hokkaido Prefecture Komeya Drugstore Co., Ltd. Headquarters: Tsurugi-machi, Ishikawa Prefecture Nara Aichi 3 drugstores Gunma 22 drugstores Osaka 4 drugstores 102 drugstores Saitama 1 home center Ibaraki 5s Izumi Co., Ltd. Headquarters: Hiroshima, Hiroshima Prefecture Tokyo 144 drugstores 1 home center Drug Eleven Co., Ltd. Headquarters: Onojo, Fukuoka Prefecture Kanagawa 63 drugstores Chiba 186 drugstores 11 supermarkets 3 home centers 11 Number of stores Division Number of stores Drugstore Supermarket Home center Total Chiba Tokyo 632 (17) Saitama Kanagawa 1 5 (-) Chiba Tokyo 648 (17) Saitama Kanagawa 186 (6) 144 (2) 102 (9) 63 (-) Chiba 1 Chiba 3 (-) 200 (6) 145 (2) 103 (9) 63 (-) Ibaraki 5 Tochigi 27 (-) Gunma 22 (-) Fukushima 8 (-) Tokyo Ibaraki 5 Tochigi 27 (-) Gunma 22 (-) Fukushima 8 (-) Number of stores by prefecture Miyagi Akita Iwate Aomori Saitama Miyagi Akita Iwate Aomori 4 (-) 4 (-) Hokkaido Niigata Shizuoka Gifu Hokkaido Niigata Shizuoka Gifu 2 (-) 2 (-) Mie Aichi Nara Kyoto 3 (-) 3 (-) Osaka Hyogo Okayama Hiroshima Osaka Hyogo Okayama Hiroshima Note: The figures in parentheses are the number of franchises. The nine franchises in Saitama Prefecture are stores of Yano Co., Ltd. Mie Aichi Nara Kyoto As of March 31, (-) 4 (-) Oita Fukuoka Oita Fukuoka 3 (-) 3 (-) Capital Partnership Tobu Drug Co., Ltd. Headquarters: Koshigaya, Saitama Prefecture Kenkou Kazoku Drug Corporation (Family Drugstore) Headquarters: Okaya, Nagano Prefecture Itohide Shoji Co., Ltd. Headquarters: Matsudo, Chiba Prefecture 12

8 Outline of the Company (As of March 31, 2004) Corporate Data Corporate History Corporate name: Address: Phone: Established: Incorporate: Common stock: Book closing date: Board of s: General Shareholders Meeting Board of s President Managing Matsumotokiyoshi Co., Ltd. 9-1, Shinmatsudo-Higashi, Matsudo-shi, Chiba (switchboard) December 26, 1932 January 8, billion March 31 President: Namio Matsumoto Executive Vice President: Kiyoshi Kuniyuki Senior Managing : Masashi Yoshida Managing : Katsuhiko Terada : Tetsuo Matsumoto : Toshio Hayata : Takao Watanabe : Yukihiko Ohkubo : Kazuaki Karahi : Kazumi Matsumoto Standing Corporate Auditor: Jun Saga Corporate Auditor: Yoshinori Ichihara Corporate Auditor: Masato Taimura Board of Auditors Executive Vice President Internal Auditing Div. Office of the President Corporate Communications Div. Senior Management Auditing Department I Auditing Department II Claims Call Center Organization Chart Products: Medicines, cosmetics, perishable foods, sundries, DIY articles, etc. Net sales: billion (Year ended March 2004) Number of employees: Full-time employees: 3,075 Part-timers: 3,045 (per 8-hours working time) Total: 6,120 Store Development Group Store Operation Group Merchandise Group Administration Group Head office Store Development Div. I Store Development Div. II Store Promotion Div. Pharmacy Div. Drugstore Div. Prescription Drug & Pharmaceutical Div. Business Alliance Administration Div. Merchandise Div. I Merchandise Div. II Merchandise Development Div. Merchandise Operation Div. Finance & Accounting Div. General Affairs Div. Personnel Div. Information Technology Div. Store Promotion Dept. I Store Promotion Dept. II Pharmacy Dept. I Pharmacy Dept. II Drugstore Dept. I Drugstore Dept. II Drugstore Dept. III Pharmaceutical Dept. Prescription Drug Promotion Dept. Business Alliance Administration Dept. I Business Alliance Administration Dept. II Pharmaceutical Products Team Beauty Products Team Household & Miscellaneous Goods Team Food Products Team DIY Team Perishables Team Merchandise Development Dept. Sales Promotion Dept. Operation & Planning Dept. Advertising Dept. Finance Dept. Budget Dept. Accounting Dept. Financial Planning Dept. Legal Dept. General Affairs Dept. I General Affairs Dept. II Personnel Dept. I Personnel Dept. II Education and Training Dept. Product Data Management System Dept. Information Technology Dept. Stores Dec.1932 Founder Kiyoshi Matsumoto Jan May 1973 Apr Mar.1977 Sep.1978 Oct Jul Nov.1988 Aug.1990 Jul Oct Mar.1994 Aug.1994 Aug.1995 Apr Nov.1996 Jan Nov.1998 Dec.1998 May 1999 Jul Aug.1999 Mar.2000 Aug.2000 Feb Mar.2001 May 2001 Jun Jul Founded on Dec. 26 as an independent business operator Matsumoto Drugstore at 44 Kogane, Matsudo city, Chiba Prefecture. Matsumoto Drugstore at time of foundation. Became incorporated. Trade name was renamed to Matsumotokiyoshi Drugstore. Founder Kiyoshi Matsumoto died at 64. Matsumotokiyoshi Drugstore was reorganized into jointstock company Matsumotokiyoshi Co., Ltd. Kazuna Matsumoto took office as president. Opened supermarket Hikarigaoka Store. Established three business divisions: Drugstore, Supermarket and Convenience Store. Launched Benri Shinmatsudo Store (convenience store). Opened Ueno Ame-yoko Store. Opened Minami-Masuo Home Center Store. Became listed on the over-the-counter market. (The Company received approval from the Japan Securities Dealers Association to register its shares on the overthe-counter market.) Opened Ikebukuro Higashiguchi Store. Relocated the head office to 9-1, Shinmatsudo-Higashi, Matsudo city, Chiba Prefecture. Opened drugstore Kashiwa Kaga Store (1st roadside store). Opened prescription pharmacy Kita-Matsudo Store. Opened Shibuya Part 1 Store. Launched TV commercials. Number of stores totaled 232. Integrated Convenience Store Division into Drugstore Division. Opened drugstore Ota Takara-chou Store (1st store in Gunma Opened drugstore Ashikaga Asakura Store (1st store in Tochigi Opened Roppongi Store. Opened Sendai Jujiya Store (1st store in Miyagi Opened Harajuku Takeshita-dori Store. Opened Ginza 5th Store. Opened Shinjuku 3-chome Store. Opened Sendai Chuo-dori Store. Opened drugstore Niigata Station Patio East Store (1st store in Niigata Listed on the First Section of the Tokyo Stock Exchange. Opened Shibuya Part 2 Store. Opened Crost Osaka Station Store (1st store in Osaka Opened Tokorozawa Part 2 Store. Namio Matsumoto took office as president. Opened Ikebukuro Part 2 Store. Formed business partnership with Takada Pharmaceutical Co., Ltd. in Shizuoka Prefecture. Formed business partnership with Yokohama Pharmacy Co., Ltd. in Aomori Prefecture. Formed business partnership with Drug Fujii Co., Ltd. in Toyama Prefecture. Opened Abenobashi Station East Exit Store (2nd store in Osaka Aug.2001 Oct Feb Apr Jun Jul Oct Nov.2002 Dec.2002 Jan Feb Mar.2003 Apr May 2003 Aug.2003 Oct Nov.2003 Dec.2003 Jan Feb Mar.2004 Opened Tenjin Matsuya-Ladies Store (1st store in Fukuoka Prefecture and Kyushu as well). Formed business partnership with Sapporo Drug Store Co., Ltd. in Hokkaido Prefecture. Formed business partnership with Natural Co., Ltd. in Fukuoka Prefecture. Commemorative ceremony for the 70th anniversary of Matsumotokiyoshi s foundation Formed business partnership with Shimizu Drug Co., Ltd. in Kyoto Prefecture. Launched a point card service. Opened Canal City Hakata Store (2nd store in Fukuoka Opened Okayama Station B-1 Store (1st store in Okayama Formed business partnership with Koyo Yakuhin Co., Ltd. in Osaka Prefecture. Opened Hamamatsu Part 1 Store (1st store in Shizuoka Opened Shinsaibashi Store (3rd store in Osaka Established Pharmacists Education Center and Cosmetics Education Center. Formed business partnership with Itayamamedico Co., Ltd. in Yamanashi Prefecture. Opened Ebista Nishinomiya Store (1st store in Hyogo Opened Fukuyama LOTZ Store (1st store in Hiroshima Opened Kintetsu Nara Station Store (1st store in Nara Adviser Toshiko Matsumoto (wife of the late Kiyoshi Matsumoto) died. Opened Akita Station ALS Store (1st store in Akita Formed business partnership with Powers Drug Co., Ltd. in Hokkaido Prefecture. Formed business partnership with Komeya Drugstore Co., Ltd. in Ishikawa Prefecture. Opened Aomori Station Building Lovina Store (1st store in Aomori Opened Sapporo Minami Ichijo Store (1st store in Hokkaido Opened Park Place Oita Store (1st store in Oita Opened Asty Gifu Station Store (1st store in Gifu Opened Tsu Station Cham Store (1st store in Mie Opened Kyoto Shijo-dori Store (1st store in Kyoto Formed business partnership with Tobu Drug Co., Ltd. in Saitama Prefecture. Executed a 2-for-1 stock split for shareholders listed on shareholders register as of Dec. 31. Formed business partnership with Kenkou Kazoku Drug Corporation in Nagano Prefecture. Formed business partnership with Izumi Co., Ltd. in Hiroshima Prefecture. Formed business partnership with Drug Eleven Co., Ltd. in Fukuoka Prefecture. Formed business partnership with Itohide Shoji Co., Ltd. in Chiba Prefecture